The deal helps Mirvac to expand into the land lease sector in Australia
Ashurst has guided Mirvac Group on its $1.01bn acquisition of land lease community operator Serenitas in partnership with Pacific Equity Partners (PEP) and Tasman Capital Partners.
According to the firm, Mirvac will make an initial investment of around $300m, with $240m being funded on settlement and $60m deferred for 12 months. The settlement is targeted for the third quarter of 2024.
Ashurst partner Anton Harris, who co-leads the corporate transactions practice group in Australia, described the deal as “a transformative transaction assisting [Mirvac] to expand into the Australian land lease sector.”
The structure is set to be a joint venture where Mirvac and PEP hold approximately 47.5% ownership each. The remaining minority stake will be held by current co-owner Tasman.
Serenitas CEO Rob Nichols said in a Mirvac press release that there was “certainly a growing awareness of modern land lease communities across Australia and the benefits available to customers, which will no doubt drive future demand.”
“Our expansion into the living sectors comes against a backdrop of critical housing undersupply, and tailwinds including rising population growth, record low rental vacancy levels and affordability challenges,” Mirvac CEO and managing director Campbell Hanan said. “This transaction immediately scales our exposure to the land lease communities sector across Australia.”
Hanan added that the deal was “well aligned with our strategy and capabilities, delivering affordable housing solutions, investing in high quality recurring income streams, and providing an opportunity to unlock value from our existing and future masterplanned community landbank.”
Harris led the Ashurst team on this transaction. He was assisted by partners Lisa Simmons, Con Tzerefos, and Rehana Box; senior associates Alexandra Nash, Meg Murray, and Sharon Liu; and associate Sophie Norrish (corporate transaction). Also providing assistance were partner Pauline Tan and associate Renata Labio (real estate); partner Jennie Mansfield and senior associate Mohamad Ardati (employment); and partner Anita Cade (IP/media).
Serenitas has a portfolio of 27 land lease lifestyle communities for people over 50 across NSW, Victoria, Queensland, and WA.